According to data released by NAR, home prices continued to be on an upward trend in the fourth quarter of 2024, with 89% of US metropolitan areas seeing an increase in existing detached home prices.
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The National Association of Realtors (NAR) said on Thursday that home prices continued to rise in the fourth quarter of 2024, with 89% of US metropolitan areas seeing an increase in existing detached home prices. I am reporting.
This is a slight increase from the last quarter when Metro registered price growth.
Median price of existing detached homes rose 4.8% year-on-year to $410,100 compared to a 3.2% increase in the third quarter. Mortgage rates fluctuated between 6.12% and 6.85% during the quarter, affecting affordability, but also contributed to the benefits of housing wealth.
Lawrence Yun | Chief Economist of the National Association of Realtors
“Recorded home prices and the associated benefits of home wealth are definitely good news for property owners,” said Lawrence Yun, NAR Chief Economist. “But tenants looking to move to homeowners face significant hurdles.”
According to NAR, some areas have seen particularly sharp price increases. 14% of the Metro area recorded double-digit price increases, doubling its share from the third quarter.
The Midwest dominated the list, with six of the top 10 markets accompanied by a median annual increase of at least 14.9%.
Major markets include Jackson, Mississippi (28.7%). Peoria, Illinois (19.6%); Chattanooga, Tennessee Georgia (18.2%); Elmira, New York (17.6%); Fondurac, Wisconsin (17.6%).
Metro Area National Association of Realtors with Maximum Percent Gain QQ4 |
Meanwhile, the South, like in the third quarter, led the existing home-based sales of single-family homes, with annual prices rising 2.1%, accounting for 45.1% of the market.
Other regions showed sharper growth. Northeast prices jumped 10.6%, Midwest 8.0% and West 4.0%.
California was incumbents ($1,920,000, 9.7 percent) of eight of the 10 most expensive markets led by San Jose Sneevale Santa Clara. Anaheim-Santa Ana-Irvine ($1,360,000, 4.7%); San Francisco Oakland Hayward ($1,315,600, 5.2%); San Diego Carlsbad ($985,000, 5.7%); Salinas ($943,900, -5.0 Pars ).
Despite prices rising most places, nearly 11% of the market saw prices fall, a slight improvement from 13% in the last quarter.
“Recognizing many workers may not have the option to move, but especially given the wide range of differences in housing prices across the country, it is about finding more affordable conditions that can be moved or willing to find more affordable conditions. You can do it,” Yun said.
At affordable prices, there is a slight improvement as mortgage rates go down, bringing monthly mortgage payments in typical existing single-family homes, bringing a 20% down payment of $2,124, 1.7 from the previous year. It has decreased by %.
Families typically spend 24.8% of their income on mortgage payments, down from 25.2% and 26.5% in the third quarter of 2023.
First time buyers also took a little break. A typical starter home was $348,600, with a 10% down payment falling 0.9% from the third quarter to $2,083. However, they still spent 37.4% of their income on mortgage payments, which fell slightly from 38.1% in the third quarter.
For many buyers, homeownership remains. To provide a 10% down payment mortgage, households needed at least $100,000 in income in 43.8% of the US market, up from 42.5% in the third quarter. Meanwhile, there is only 2.2% of the market that has affordable homes for households under $50,000.
Email Richelle Hammiel
